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Use the following balance sheets and income statement for this question
All numbers are in million dollars
Balance Sheets YUMS Inc. | 2019 | 2018 | | 2019 | 2018 |
Cash and cash equivalents | 1,148.1 | 1,164 | Account payables | 540 | 282.6 |
Short term investment sec. | 902.6 | 285.7 | Accrued expenses | 1,086.5 | 1,082.4 |
Account receivables | 386.5 | 302.7 | Notes payables | 449.3 | 414.1 |
Inventories | 965.8 | 543.3 | Long-term debt | 549.5 | 549.4 |
Other receivables | 391.9 | 460.7 | Other long-term debt | 347.8 | 375.1 |
Total Current Assets | 3,794.9 | 2,756.4 | Total liabilities | 2,973.1 | 2,703.6 |
Net Property Plants (Net PPE) | 2,355 | 2,416.5 | Common stock+paid in cap. | 40.1 | 40.1 |
Other long-term assets | 1,210.5 | 1,213 | Retained earnings | 4,347.2 | 3,642.2 |
Total Assets | 7,360.4 | 6,385.9 | Total liab + Equity | 7,360.4 | 6,385.9 |
Income Statements YUMS Inc. | 2019 | 2018 |
Net sales | 11,700.4 | 10,707.4 |
Cost of sales | 9,016.4 | 8,303.2 |
Selling & admin. expense | 636.1 | 622.5 |
Depreciation expense | 523.3 | 510.4 |
Operating Income | 1,524.6 | 1,271.3 |
Interest expense | -33.3 | -32.7 |
Interest income | 319.8 | 198.4 |
Earnings before income tax | 1,811.1 | 1,437 |
Income taxes | 543.33 | 431.1 |
Net earnings | 1,267.77 | 1,005.9 |
Total dividend payment | 705.00 | 560.00 |
Calculate the firm's Free Cash Flow during 2019 and explain the meaning of your calculated free cash flow to YUMS investors.
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